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PCCW Global and China Network Communications elevate partnership to new level

Partners launch their first International Ethernet Private Line service between Hong Kong and Beijing

HONG KONG, June 6, 2007 - PCCW subsidiary PCCW Global and China Network Communications (CNC) today jointly announced their first high-end International Ethernet Private Line (IEPL) service between Hong Kong and Beijing. In May, PCCW Global and CNC signed a letter of intent based on transmission of TV coverage for the Beijing 2008 Olympic Games and today announcement elevates the partnership to a new level.

International Ethernet Private Line (IEPL) is an end-to-end managed bandwidth solution that provides dedicated, point-to-point, cross-border connectivity over a reliable platform at high speed, with the option of scalable upgrades. IEPL is an ideal cross-border connectivity solution for high volumes of traffic and mission critical applications, such as high-bandwidth data transfer and video, as well as storage applications. Such applications require a scalable platform with the flexibility to upgrade quickly, enabling better cost management and the accommodation of ad-hoc business requirements.

The service is ideal for banking and finance, information and technology, and trading and manufacturing industries, by satisfying the need for high-speed bandwidth service.

PCCW Global is the first to partner with CNC in the provision of an end-to-end IEPL service between Beijing and Hong Kong. This service offers full quality-of-service guarantees and sets a new standard in the marketplace.

PCCW Global Chief Executive Officer Dan Lovatt said: We are proud to join hands with CNC to introduce our first IEPL service between Hong Kong and Beijing. This also signals closer co-operation as partners in international business.

CNC Senior Vice President Zhao Jidong said: We are pleased to partner with PCCW Global to launch the IEPL service in Hong Kong and Beijing. Through incorporation of new technologies and with the support of our partner, this move also represents an important milestone in our service development.

In support of the launch, PCCW Global and CNC will hold a series of promotional events in Beijing and Hong Kong, including a live IEPL service demo at the Broadband World Forum Asia event in Beijing to show how this very reliable and scalable platform will meet the needs of mission critical applications. The two are also planning a series of seminars and receptions to help communicate the merits of IEPL among China enterprises.

About China Network Communications Group Corporation

About China Network Communications Group Corporation China Network Communications Corporation (hereafter referred to as "CNC") is a super telecommunications enterprise in China and the fixed telecommunications service partner for the 2008 Olympic Games. It is a well-known telecommunications operator both in China and in the world.

The predecessor of CNC had a history of over 100 years. On May 16th 2002, CNC was established on the basis of the former China Telecom Group Corporation and its affiliated telecom companies in the 10 northern provinces (autonomous regions and municipalities), China Network Communications Shareholding Company Limited, Jitong Communications Company Limited, according to the Scheme of Telecom System Reform of the State Council.

As a company endorsed by the State Council to make state authorized investment as well as a pilot company with state-controlled shares, CNC is under direct leadership of the central government and listed independently in national finance and relevant plans. CNC has a total registered capital of RMB 60 billion yuan, and the value of its total assets approximated RMB 300 billion yuan.

CNC owns well-structured modern communications networks that cover the whole country and reach the world. The networks are equipped with advanced technologies and provide comprehensive functions. CNC's business covers various national and international fixed telecommunications network facilities and related telecommunications services.

Currently, CNC is dedicated to the development of broadband communications, among which services or brand names such as "CNCConnected", "CNCMAX", "Golden Club" and the service access number "10060" have penetrated into almost all households.

China Netcom aims to transform itself by implementing strategies of Broadband, Olympics and Internationalization, and endeavors to become a well-balanced comprehensive information service provider with sustainable growth by providing high quality full-line services, a robust network as well as modern corporate governance. China Netcom is constantly improving its core competence to play a key role in China's efforts to become a telecom giant of the world and thus contributes to the development of national economy and social progress.

About PCCW Limited

PCCW Limited (SEHK: 0008) is the premier telecommunications provider in Hong Kong and a leader in Information and Communications Technologies in Asia. While expanding opportunities in mainland China in partnership with China Network Communications Group Corporation, PCCW continues to enhance Hong Kong's role as a regional center of technological excellence through innovative services in new generation fixed-line and mobile telephony, broadband, information technology, wireless communications, and IPTV (through its successful now TV network operated by PCCW subsidiary PCCW Media Limited). PCCW also provides cutting-edge technical services to network operators worldwide. PCCW subsidiary Pacific Century Premium Developments Limited is engaged in property development. To learn more about PCCW, go to www.pccw.com

About PCCW Global

Headquartered in Hong Kong, Herndon, Virginia in the US and London in the UK, and with teams in Europe, Asia and the Americas, PCCW Global offers an extensive range of international data and voice services, plus a full suite of value-added services. These include business-class Private Leased Line, ATM/frame relay and IP and hosted PBX solutions for carriers, service providers and enterprises over a global network covering more than 70 countries. PCCW Global is the worldwide business unit of PCCW Limited, one of Asia's leading players in Information & Communications Technologies (ICT). To learn more about PCCW Global, go to www.pccwglobal.com

For more information, please contact:

Ivan Ho Corporate Communications, PCCW Limited
Tel: +852 2883 8747
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